Forensic audit reveals City of Konawa mismanagement of funds

KONAWA, Okla. (KFOR) — Oklahoma State Auditor and Inspector (SA&I) Cindy Byrd released a forensic audit report on Thursday that reveals mismanagement of funds for the City of Konawa.

An investigation was launched by Byrd after receiving a request in 2020 from the Konawa City Council, with additional requests in 2021 and 2023, related to allegations of fraud, including unauthorized payments, improper compensation, and misappropriation of funds, by six former city officials over six years.

“Day-to-day operations are delegated to the City Manager but the City Council bears ultimate responsibility for oversight and accountability,” Auditor Cindy Byrd said. “Over a six-year span, Konawa had at least three different City Managers. This constant leadership change led to inconsistent administrative practices and weakened the City’s ability to maintain proper oversight.”

According to Byrds' audit report, former City Clerk Shauna Farmer received unauthorized payments that totalled $53,298. In August 2020, Farmer admitted to misappropriating funds and resigned afterwards.

Former City Manager Tim Cully received improper and unsupported compensation, which totaled $7,016. He faced criminal proceedings in 2023 for personal use of the City's fuel card and had to pay $2,852 in restitution to the City.

Former City Treasurer Stephanie Clanton received $1,800 in payroll overpayments. After resigning in April 2023, she repaid $900.

City Manager Brett Wade was fired in 2021, and his wife, City Treasurer Tamara Wade, resigned after being found using the City's credit card to buy swimming pool supplies and auto parts for personal use.

The audit goes on to point out issues with utility billing, saying that between May 2019 and November 2020, the City issued $37,981 in adjustments to customer utility accounts, which had no documentation or rationalisation as to why the adjustments were performed.

“Konawa City Councilmembers failed to provide oversight and, worst of all, they failed to act when problems came to light,” said Auditor Byrd. “The City Council continued to employ individuals who were allowed to maintain unilateral control over the city’s operations. In some instances, individuals were found to have misappropriated resources, yet the consequences were surprisingly lenient, often limited to light disciplinary measures rather than immediate termination.”

The full audit report can be read below.